Drivers willing to pay more for vehicle technology, comfort

In-vehicle technology that improves a vehicle's comfort and usability is worth paying some extra money on the sticker price, drivers indicated in a global survey by the business information provider IHS Markit.

More than 5,000 vehicle owners who plan on buying a new vehicle in the next three years were surveyed for the company's "2017 Automotive Connected Services and Apps Consumer Analysis" report. Drivers were polled in the United States, Canada, China, Germany, and the United Kingdom.

More than half of the respondents said they already own at least one vehicle with telematics, or the ability to receive or transmit data for information, entertainment, navigation, or other purposes. Just over half of all respondents—51 percent— said they preferred to buy a vehicle with real-time traffic information. Forty-one percent said they preferred a dynamic routing system, while 36 percent preferred automatic navigational updates based on wireless updates of traffic conditions.

Thirty-two percent of all respondents said it was important that their next vehicle have a roadside assistance feature. Twenty-eight percent said it was important to have stolen vehicle assistance.

The survey found that Chinese drivers were more likely to favor vehicles with features that can be remotely controlled by a smartphone. Thirty-nine percent of respondents favored this technology, making it the most desired feature among the nation's drivers.

However, many respondents around the world also indicated that they were interested in integrating smartphone apps into their in-vehicle system. Nearly every respondent who had already replicated their smartphone system in an in-vehicle display said they were interested in having this ability available on their next vehicle.

Almost half of all respondents said they used navigation apps when connecting their smartphone to an in-vehicle system. Forty percent said they connected a weather app from their smartphone, while 36 percent connected a music app.

"Consumers expect a lot from their next vehicle," said Colin Bird, co-author of the report and automotive technology analyst at IHS Markit. "Their expectations are constantly evolving as well, as consumers expect development and implementation of these technologies in vehicles to be introduced as quickly as consumer electronics such as smartphones and tablets. It's up to OEMs and suppliers to determine how to best address these challenges and ramp up business plans accordingly."

Among the 31 technologies respondents were asked about, Americans were most likely to express interest in a rear seat entertainment system. On average, respondents were willing to spend an additional $640 for this feature. A rear seat entertainment system was the second most wanted feature in China and the United Kingdom, although these countries had a lower price threshold of $388.

In the four countries in the report other than the U.S., a sunroof-moonroof system was the most desired technology. German drivers were most willing to pay for this feature, with a price point of $642.

Thirty-two percent of respondents said they would be willing to pay for telematics in their next vehicle, while 29 percent said they would pay for in-vehicle wi-fi. However, drivers set lower price points for this technology than for other features. Drivers in Canada were only willing to pay $168 more for telematics, while drivers in the U.S. said they would pay up to $472 for in-vehicle wi-fi.

IHS Markit forecasts that more than half of all new vehicles in 2022 will be equipped with telematics. This prediction includes a share of 92 percent for the United Kingdom, 91 percent for Germany, 89 percent for Canada, 87 percent for the U.S., and 54 percent for China.